EUR / USD still pointing to a move towards 1.1600 – UOB

Currency strategists at UOB Group point out that the EUR / USD it could go down and visit the 1.1600 zone in the next few weeks.

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24 hour opinion: “Yesterday, we highlighted that ‘although the EUR / USD could weaken further, still oversold conditions suggest that EUR / USD is unlikely may break the main support at 1.1670 for now. ‘ The subsequent weakness of the EUR / USD exceeded our expectations, as the EUR / USD it broke 1.1670 and fell to 1.1664. Despite the decline, the downside momentum has not improved as much. From here, the EUR / USD it could aim lower and test the next big support at 1.1640 first before the risk of a bounce increases. Resistance is at 1.1695, but only a breakout of 1.1715 would indicate that the current downside pressure has eased. “

Next 1-3 weeks: “We have gone negative in two days (August 18, EUR / USD at 1.1710). Yesterday we pointed out that ‘the risk of the EUR / USD it is still lower and the next level to focus on is 1.1670, followed by 1.1640 ‘. Subsequently, the EUR / USD dropped to 1.1664. While the downside momentum hasn’t improved much, the risk remains a EUR / USD lower. A breakout of 1.1640 would shift focus to the higher and rather critical 1.1600 level. Generally, downside risk is considered intact as long as the EUR / USD remains below 1.1745 (‘strong resistance’ previously at 1.1775). “

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